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Gold Eyes Powell’s Speech; Oil Demand Set to Soar

Published 07/02/2023, 06:46
Updated 09/07/2023, 11:31
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Gold

Gold prices have started to regain some of their losses, and yesterday, the price closed in positive territory. However, the gains are minimal and do not show anything meaningful behind them. This is because the dollar index is gaining more strength, and every print of the US economic data brings more strength to the dollar index. Traders are betting that the greenback will likely see life returning to it as the Fed may show a more hawkish hand.

Jerome Powel’s speech at 5:00 PM GMT will be the most interesting event to watch as it could really make or break the rally for the precious metal. A message which shows consistency and is more in line with their previous message could push the gold price higher and vice versa.

Oil

The devastating earthquake situation in Turkey is a major focal point among investors and traders as the natural disaster has threatened the supply equation due to the shutdown of a major export terminal in the country. Traders are also optimistic about demand in China as economic data suggests that the second-biggest economy in the world is on the rise, and there is little concern over an economic slowdown. This is why we have seen Saudi Arabia increasing crude oil prices in Asia, which it has done for the first time in nearly six months.

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